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SAC Code of Freight Charge in Goods Invoice

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Raju Roy

Accountant

52 Points Posted on 22 May 2021

Dear Sir,

Pls advice whether can I mention SAC Code of Freight / Packing Charge in Sale Invoice of Electrical Goods item..

If I ignore to mention SAC Code then Hsn / Sac Summary and Sales figure will be mismatched in Tally GSTR 1 Report.
In my opinion, Sac Code of Freight and Packing Charges agt. Sales are to be ignored since these are all Supply of Goods not Service.

Pls advise your opinion.

Thanks.

Replies (4)

Quick Summary

This discussion explores the mandatory inclusion of SAC codes for freight and packing charges on invoices for electrical goods. The original poster questioned whether to include SAC codes, as they felt these were part of goods supply, not services. It was clarified that SAC code 99854 is applicable for packaging services, and the GST rate for freight/packing often aligns with the goods' GST rate.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 23 May 2021

SAC code should be mandatory mentioned in sale invoice of freight or packing charges

Raju Roy

Accountant

52 Points Posted on 23 May 2021

Hi Sourav Sir,
Thanks for your reply.
Since I sell goods, GST Rate of Freight / Packing Charge depends on GST Rate of Goods (Eg. 12% or 18%).
Then what is the SAC Code of Freight or Packing Charge to be mentioned in Goods Sale Invoice? We are not Service Provider.
Please let me know.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 23 May 2021

Services Accounting Codes (SAC Codes) 99854 is used for the Packaging services under Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service.